❓WHAT HAPPENED: The Consumer Price Index (CPI) in July rose 2.7 percent on an annual basis, slightly below economists’ forecast of 2.8 percent.
👤WHO WAS INVOLVED: The Bureau of Labor Statistics (BLS) and economists polled by FactSet.
📍WHEN & WHERE: The CPI data for July 2025 was released on August 12, 2025.
🎯IMPACT: Economists are closely monitoring the effects of inflation and tariffs on consumer prices, with some categories like apparel and home furnishings seeing slight increases.
The Consumer Price Index (CPI) for July 2023 rose by 2.7 percent on an annual basis, according to the Bureau of Labor Statistics (BLS). This figure came in slightly below the 2.8 percent increase forecasted by economists polled by FactSet. On a month-to-month basis, the CPI rose 0.2 percent, aligning with expectations.
Core inflation, which excludes the more volatile food and energy prices, increased by 3.1 percent over the past year, slightly above the 3 percent prediction by economists. Food prices matched the overall inflation rate, rising 2.7 percent annually. Notable increases were seen in items such as eggs (up 16.4 percent), roasted coffee (up 14.8 percent), and ground beef (up 11.5 percent). Gasoline prices, however, dropped by 9.5 percent compared to July 2022.
Economists are also observing the effects of tariffs on consumer prices. Goods from over 60 countries, including the European Union (EU), are now subject to new reciprocal tariffs implemented on August 7, 2025. Categories such as apparel and home furnishings have already shown signs of slight price increases due to these levies.
The CPI, which tracks changes in prices for a basket of goods and services commonly purchased by consumers, remains a key measure of inflation. Notably, the inflation rate has remained at or below three percent for much of the year despite Wall Street fears that tariffs would cause runaway inflation.
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